TMI Blog1998 (4) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the Order-in-Appeal dated 28-11-1990 passed by the Collector of Central Excise (Appeals), Madras. The Collector (Appeals) had by the said order set aside the order of the Assistant Collector confirming a duty demand of Rs. 30,771.10 as Basic Excise Duty and Rs. 1,535.76 as Special Excise duty on items falling under Chapter 8607.00 against the Respondents. 4. The facts briefly are : 4.1 The Respondents M/s. Pushfab Industries are manufacturers of two items falling under Chapter sub-headings 8431.00 and 8607.00 respectively of the Schedule to Central Excise Tariff Act, 1985. In respect of Item 8431.00 they availed full exemption limit of Rs. 15 lakhs in terms of Notification No. 175/86-C.E. upto 12-7-1989. As regards items falling un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollector held that it was not possible to allow at the same time Modvat credit in respect of one item and permit availment of exemption for the other item. The adjudicating authority held that under Notification 175/86, when Modvat credit was availed for one product, there cannot be any exemption for another product upto Rs. 15 lakhs since Modvat has to be availed simultaneously for all the products. The Assistant Collector had further held that under Notification 175/86, full duty exemption will be available for value of clearances upto Rs. 15 lakhs where only one product is manufactured in the factory. When two or more products are manufactured in the same factory then full exemption will be available for a total value of clearances upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances namely, (i) where the manufacturer availed himself of the credit of duty on inputs used in manufacture of specified goods under Rule 57A and (ii) where he does not avail such credit facility. In cases where the manufacturer avails himself of the credit facility under Rule 57A, the exemption under this notification is available only to the extent of an amount calculated at the rate of 10% ad valorem. A manufacturer can avail of full exemption under the notification only when the manufacturer is not availing Modvat credit facilities. These rates are applicable in respect of first clearances of the specified goods upto an aggregate value of Rs. 30 lakhs subject to the condition specified in Proviso to Paragraph 1 of the notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in Ramakrishna Engineering Works v. Collector of Central Excise, Bolpur - 1996 (83) E.L.T. 346. Disposing of a number of appeals raising the same question of law, namely, the interpretation of the words first clearances occurring in Paragraph 1(a) of Notification No. 175/86, the Tribunal reviewed the earlier decisions as well as the relevant notices issued by the various Collectorates. The Tribunal had summed up the legal position as under :- 13. The exemption under notification is for specified goods cleared for home consumption on or after the first day of April in a financial year. The limit of Rs. 30 lakhs is placed on the aggregate value of first clearances on specified goods. Within the first clearances on specified goods upto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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